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bigduckontax
bigduckontax, Accountant
Category: Tax
Satisfied Customers: 3817
Experience:  FCCA FCMA CGMA ACIS
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I have £350,000 to invest as a lump sum from a property company

Customer Question

I have £350,000 to invest as a lump sum from a property company which I want to put
towards a property that I am purchasing in Luxembourg. What would bve the tax
implications in this country of me taking out this money from the UK limited comapny?
Submitted: 2 years ago.
Category: Tax
Expert:  bigduckontax replied 2 years ago.

Hello, I am Keith, one of the experts on Just Answer, and happy to help you with your question.

Please advise me if you are an UK resident? If not. in which country are you resident? Once I have this information I can assist you further.

Customer: replied 2 years ago.

I am a UK resident. Did you get my last e mail

Expert:  bigduckontax replied 2 years ago.

I am sorry, I did not get your email which explains the delay in response.

If you take this money out of the UK company as a loan to a director this can have horrendous tax consequences if it is not repaid within nine months of the end of the company's accounting year. In general terms you are not advised to do this. You can read all about the perils and tax and National Insurance consequences of company loans to directors and shareholders at the Gov UK web site here:

https://www.gov.uk/directors-loans/you-owe-your-company-money

Of course, if these moneys are those you have lent the company yourself then the problem does not arise as when you take the money out the company is merely repaying to you a loan made by you.

A solution which avoids all this is for the company to acquire the property in Luxembourg and take it onto its books of account as a fixed asset.

I do hope that my answer has been of some assistance.

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